Friday, August 12, 2011

[CPSI NewsWire: SouthGobi Turns Profit in Q2]

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Close: Mongolia Related ASX Listed Companies, August 11, 2011



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SouthGobi (01878) interim turns black to US$20.72m

August 11 (ETNet) SouthGobi Resources (01878) said it recorded net income of US$20.72 million for the six months ended 30 June 2011, as compared to a loss of US$115 million for the corresponding period of 2010. 

The turnaround was primarily due to a US$33.6 million gain on the fair value change of the embedded derivatives in the CIC convertible debenture

Its basic income per share were US$0.11. 

The revenue was US$67.49 million, expanded by 1.14 times from a year earlier, driven by both higher sales volumes and higher realized sales prices. (HL) 

Link to article


SouthGobi Resources Announces Second Quarter 2011 Financial and Operating Results

HONG KONG, CHINA--(Marketwire - Aug. 10, 2011) - SouthGobi Resources Ltd. (TSX:SGQ)(SEHK:1878) (the "Company" or "SouthGobi") today announced its financial results for the six months ended June 30, 2011. All figures are in US dollars unless otherwise stated.


The Company's highlights for the quarter ended June 30, 2011 and subsequent weeks are as follows:

·         Total sales of approximately 1.05 million tonnes and revenue of $47.3 million for the quarter ended June 30, 2011, with both figures representing a record for any given second quarter and the revenue also being the highest quarterly revenue since the commencement of mining operations;

·         Average realized selling price for the second quarter of 2011 was $54 per tonne, an increase of 7% compared to the first quarter of 2011 and an increase of 27% compared to the second quarter of 2010;

·         Income from mining operations of $9.7 million for the second quarter of 2011, which represents a quarterly record since the commencement of mining operations;

·         Cash costs impacted by unforeseen issue of diesel fuel shortage in Mongolia but issue largely resolved now;

·         Entered into an agreement with Ejinaqi Jinda Coal Industry Co. Ltd ("Ejin Jinda") to toll wash coal from the Ovoot Tolgoi Mine; and

·         Received a mining license pertaining to the Soumber Deposit.

·         Awarded the tender to construct a paved highway from Ovoot Tolgoi to Mongolia-China border with consortium partner NTB LLC.


The Company's operating results for the previous eight quarters are summarized in the table below:













Volumes and prices

Raw semisoft coking coal

Raw coal production (millions of tonnes)









Coal sales (millions of tonnes)









Average realized sales price (per tonne)

















Raw higherash coal

Raw coal production (millions of tonnes)









Coal sales (millions of tonnes)









Average realized sales price (per tonne)


















Raw coal production (millions of tonnes)









Coal sales (millions of tonnes)









Average realized sales price (per tonne)


















Direct cash costs of product sold (per tonne)

















Total cash costs of product sold (per tonne)

















Waste movement and stripping ratio

Ovoot Tolgoi Mine - Sunset Pit

Total waste material moved (millions of bank cubic meters)









Strip ratio (bank cubic meters of waste rock per tonne of coal produced)









Ovoot Tolgoi Mine - Sunrise Pit

Total waste material moved (millions of bank cubic meters)









Other operating capacity statistics


Number of mining shovels/excavators available at period end









Total combined stated mining shovel/excavator capacity at period end (cubic meters)









Number of haul trucks available at period end









Total combined stated haul truck capacity at period end (tonnes)









Employees and safety

Employees at period end









Lost time injury frequency rate (per 100,000 man hours)







n/a (i)

n/a (i)

Link to release

SGQ/1878 Analyst Coverage (sources: 






Tony Lesiak



Salman Partners

Mike Plaster

Top Pick


BMO Capital Markets

Meredith H. Bandy



Citigroup Global Markets

Thomas P Wrigglesworth



IFG Continent

Laura Alimkulova



CIBC World Markets

Alex Kodatsky

Sector Outperformer


TSO & Associates

Terence S. Ortslan



Standard Chartered

Wei Ouyang




Andrew Driscoll



BNP Paribas

James Clarke




Ada Dai



Renaissance Capital

Matthew Whittall




Manas Petroleum Corp. Financial and Operations Update as of June 30, 2011

BAAR, Switzerland, Aug. 11, 2011 /PRNewswire/ -- Manas Petroleum Corp. ("Manas") (TSX-V: MNP; OTCBB: MNAP) is pleased to report that it has filed on EDGAR and on SEDAR its quarterly report on Form 10-Q for the second quarter of 2011.  The complete document can be viewed at either or

Financial Results for the Six Month Period ended June 30, 2011

Net loss for the six month period ended June 30, 2011 was $18,673,829 as compared to net income of $55,912,188 for the same period in 2010. This is a decrease of $74,586,017 and is mainly related to our investment in Petromanas. For the six month period ended June 30, 2011, we recorded a decrease in fair value of investment in associate of $16,236,143. In the six month period ended June 30, 2010 we recorded an initial gain from sale of subsidiary (Manas Adriatic) of $57,850,918 and a subsequent increase in fair value of investment in associate (Petromanas) of $2,934,535. Operating Expenses for the six month period ended June 30, 2011 decreased to $2,374,067 from $4,989,167 reported for the same period in 2010. This decrease of 52% or $2,615,100 in our total operating expenses is mainly attributable to lower stock-based compensation expenses in personnel costs and consulting fees.

Liquidity and Capital Resources

Our cash balance as of June 30, 2011 was $18,874,300. Our total current assets as of June 30, 2011 amounted to$19,453,485 and total current liabilities were $382,017 resulting in net working capital of $19,071,468.

Of the 200,000,000 common shares of Petromanas held by us, 80,000,000 were freely tradable as of June 30, 2011. The market value of these freely tradable shares was approximately $23,750,000.

Shareholders' equity as of June 30, 2011 was $75,340,731.

On May 6, 2011, we completed a public offering of units pursuant to a long form prospectus filed in all of the Provinces of Canada except Quebec and a registration statement on Form S-1 filed with the Securities and Exchange Commission in the United States. In the offering, we sold a total of 44,450,500 units at a price of $0.50 per unit for aggregate gross proceeds of$22,225,250. Each unit consisted of one share of common stock in the capital of our company and one common share purchase warrant, and each warrant entitles the purchaser to purchase one additional common share until May 6, 2014 at a purchase price of $0.70 per share.

Also on May 6, 2011, shares of our common stock and all of the unit warrants sold in the public offering were listed on the TSX Venture Stock Exchange.

Recent Developments


Work Program

Our 2011 work program in Mongolia is based on the integration of all available data, acquired by Gobi Energy Partners ("Gobi") from the region. We were concentrating on our two blocks – Block XIII, Tsagaan Els and Block XIV, ZuunBayan – and the area operated today by Dongsheng, which just finalized their field development. Gobi acquired these data by own surveys in the last years or from former operators and the authorities. The data include 431 wells and 951 km 2 D seismic besides several gravity surveys, field data and last year's seismic.

This evaluation resulted in a work program consisting of up to 1700 km 2 D seismic. It covers 10 prospective areas over both blocks, identified by the integrated approach. The 2 D survey is designed in 8 phases without any interruption between the phases; however, some phases show interdependencies. The contract with the seismic contractor is based on 532 km full fold as a firm program and a further 1,106 km full fold as an optional program.

Preparation and mobilization has commenced and the acquisition is expected to begin in mid-August 2011.

Gobi signed the agreement for Seismic Services with Sinopec Mongolia LLC ("Sinopec"), a wholly-owned subsidiary of China Petrochemical Corporation (Sinopec Group), on July 12, 2011. Sinopec has extensive seismic experience in this area. Sinopec offers all services from seismic to drilling and drilling related services. We expect Sinopec will use Sercel equipment for the survey. The total cost of the whole program, including mobilization and demobilization, is projected to be US$4.2 million. Nine companies participated in the tender.

Through this seismic survey we expect all exploration prospects will be identified respectively outlined, and it will increase the chances of success of the exploratory wells we intend to drill upon completion and interpretation of the new data. The first well is anticipated to be spudded in the second quarter of 2012.


On May 11, 2011 DWM Petroleum AG received permission from the Mongolian Petroleum Authority to transfer the title of both PSCs covering Blocks Zuunbayan-XIV and Tsagaan Els XIII to its newly created Swiss subsidiary Gobi Energy Partners GmbH. After the restructuring DWM, through its subsidiary, will have a working interest of 74%. Currently the Mongolian team is finalizing the documentation process enabling the transfer of the local company Gobi Energy Partners LLC to Gobi Energy Partners GmbH.

Link to release


Garrison Appoints Stephen Woodhead as Chief Financial Officer and Extends Previously Announced Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - Garrison International Limited (TSX VENTURE:GAU) ("Garrison" or the "Company"), is pleased to announce the appointment of Stephen Woodhead as Chief Financial Officer. Mr. Woodhead is a senior financial executive with over 20 years of experience in the natural resource and public finance sectors. He holds a Bachelor of Commerce from the University of Cape Town, South Africa and is a member of the South African Institute of Chartered Accountants. Mr. Woodhead has served in senior financial positions with several public companies, including Chief Financial Officer of Desert Sun Mining Corp, until it was acquired by Yamana Gold in 2006. Gaetan Chabot has resigned as CFO and the Company would like to thank Mr. Chabot for his service.

In addition, the Company announces the extension of the private placement financing previously announced on June 3, 2011. The financing is a non-brokered private placement of up to 100,000,000 units (the "Units") at a price of $0.05 per Unit for aggregate gross proceeds of up to $5,000,000 (the "Offering"). Each Unit will consist of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one further Common Share at an exercise price of $0.10 per Warrant for a period of two years from the closing of the Offering. The Offering remains subject to approval of the TSX Venture Exchange. For additional details, please refer to the Company's press release dated June 3, 2011.

Link to release


Robust copper prices the 'new normal', say analysts (CAML BUY, TP 220p)

August 10 (Proactive Investors UK) The copper mining industry is operating under “a high degree of stress”, with forecast demand for the metal over the medium term much higher than projected capacity, according to Canaccord analysts. The outlook suggests robust copper prices going forward.

The projected tight supply-demand environment “should underpin investor confidence that copper prices of US$6,600 and above are now simply normal”, they say.

Their long-run price forecast is based on an analysis of 16 copper projects announced and under study by large mining companies.

But as well as tight supply, rising costs will also demand higher prices.  Canaccord points out that capital costs in the copper industry have risen “dramatically” since the 1990s, with higher tax takes and operating costs.

The analysts say: “In our view, this means copper company managements need to be confident in life of mine prices averaging at least US$6,600/tonne, if not higher.

“We do not believe that copper equities are pricing in such a reality, even for those with mines already in production.”

They reckon that in such an environment, companies with relatively low-cost, producing assets, such as Chile-focused Antofagasta (LON:ANTO) and, assuming it can delivery with key projects, Central Asia Metals (LON:CAML), look highly attractive.

The current credit market concerns over sovereign debt markets means Canaccord analysts also prefer companies with lower-cost production and cash balances.

They are confident that both their preferred copper picks, Antofagasta and Central Asia Metals, offer this combination. 

Antofagasta management has an “enviable problem”, say the analysts, “with many projects in its portfolio and plentiful cash being generated to spend on them”.

Canaccord rates Antofagasta shares a ‘buy’ with a price target of 1610 pence. The stock is its favourite among the large cap producers.

Kazakhstan and Mongolia focused Central Asia Metals, meanwhile, boasts the potential to be a successful low-cost copper producer.

Canaccord says the combination of imminent start-up of production and what looks to be very low-cost production, makes Central Asia Metals its top pick within its copper universe.

Central Asia’s first leach plant is under construction in Kazakhstan, with first commercial production scheduled for late 2011.

The analysts add: “Given an all-in cash cost of approximately 71 cents/lb for copper produced over the plant life, we anticipate very strong cash generation from the asset.

We expect Central Asia Metals management to pay a dividend in 2012, as well as commit to developing a second leach plant to accelerate production.

The resulting cash stream could in part be used to progress the Alag Bayan copper prospect that the company owns in Mongolia.

Canaccord is initiating coverage of Central Asia Metals with a ‘buy’ recommendation and a price target of 220p. The stock is the broker’s top pick within its copper universe.

The analysts say their generally positive stance on the copper market - assuming that the world does not plunge back into a substantial global recession – means they believe both Antofagasta and Central Asia Metals offer good risk/reward profiles.

Link to article



August 11, Mongolian Mining Corporation (HK:975) --

NOTICE IS HEREBY GIVEN that an extraordinary general meeting (the “EGM”) of Mongolian Mining Corporation (the “Company”) will be held at Salon 4 (Level 3), JW Marriot Hotel Hong Kong, Pacific Place, 88 Queensway, Hong Kong on Wednesday, 31 August 2011 at 9:00 a.m. for the purpose of considering and, if thought fit, passing, with or without modification, the following resolution as an ordinary resolution of the Company:


1. “THAT

(a) the Service Agreement (as defined in the circular of the Company dated 12 August 2011 (the “Circular”) of which this notice forms part) entered into between the Company and its subsidiaries (the “Group”) and Uniservice Solution LLC (“Uniservice Solution”) (a copy of the Service Agreement was tabled at the meeting marked “A” and signed by the Chairman for the purpose of identification) pursuant to which Uniservice Solution provides office and camp supporting services to the Group and the annual caps and the transactions contemplated thereunder be and is hereby approved, ratified and confirmed;

(b) the Sale and Purchase Agreement (as defined in the Circular of which this notice forms part) entered into between Energy Resources LLC, Enrestechnology LLC, Transgobi LLC, Ukhaa Khudag Water Supply LLC and Uniservice Solution (a copy of the Sale and Purchase Agreement was tabled at the meeting marked “B” and signed by the Chairman for the purpose of identification) pursuant to which Energy Resources LLC, Enrestechnology LLC, Transgobi LLC, Ukhaa Khudag Water Supply LLC sell and Uniservice Solution purchase the Assets (as defined in the Circular) and the transactions contemplated thereunder be and is hereby approved, ratified and confirmed; 1and

(c) any one director of the Company be and is hereby authorised to execute all documents, do all acts and things and take all steps which in his/her opinion he/she may consider necessary, desirable and expedient for the implementation of and giving effect to the Service Agreement and the Sale and Purchase Agreement and the transaction contemplated thereunder.”

2. “THAT

(a) the Fuel Supply Agreement (as defined in the Circular of which this notice forms part) entered into between the Group and NIC LLC (“NIC”) (a copy of the Fuel Supply Agreement was tabled at the meeting marked “C” and signed by the Chairman for the purpose of identification) pursuant to which NIC supply fuel products to the Group and the annual caps and the transactions contemplated thereunder be and is hereby approved, ratified and confirmed; and

(b) any one director of the Company be and is hereby authorised to execute all documents, do all acts and things and take all steps which in his/her opinion he/she may consider necessary, desirable and expedient for the implementation of and giving effect to the Fuel Supply Agreement and the transaction contemplated thereunder.”

Link to release

Link to EGM Circular



August 10 -- Winsway Coking Coal Holdings Limited (the “Company”, HK:1733) hereby announces that a meeting of the board of directors (“Board”) of the Company will be held on Monday, 22 August 2011 for the purpose of, among other matters, considering and approving the interim results of the Company and its subsidiaries for the six months ended 30 June 2011 and the publication and announcement thereof.

Link to release



/04.08.2011, Ulaanbaatar/  XacBank LLC ("XacBank") announces it has established a US$300,000,000 Euro Medium Term Note Programme (the "Programme"). ING and UBS have been appointed to act as the joint arrangers and dealers of the Programme.

Under the Programme, XacBank may issue senior or subordinated notes in any currency as may be agreed between XacBank and the relevant dealer(s), subject to any applicable legal or regulatory restrictions.

Moody's Investors Service has assigned a provisional (P)Ba3 senior debt rating to the Programme. The (P)Ba3 is the same as the bank's issuer rating, and the rating outlook is stable.

Mr Bat-Ochir Dugersuren, XacBank's CEO said: "In recent years, we have leveraged our extensive microfinance experience to broaden our presence in the small to medium-sized enterprise (“SME”) business sector, in line with economic development in Mongolia. The Programme will enable us to diversify our funding sources, and play an important role in the future development of XacBank".

Mr Amar Hanibal, Managing Director of TenGer Financial Group, the parent company of XacBank added: "The establishment of the Programme is an important milestone in the development of the bank and the group, and it reflects our strategy of maintaining leadership in the Mongolian financial sector".

XacBank is one of Mongolia’s leading commercial banks, and is an established leader in the microfinance industry with a growing presence in the SME business segment. The bank offers a broad range of products, including microbusiness loans, consumer loans, SME loans, agricultural loans and mortgage loans, as well as deposit accounts, overdraft facilities, credit cards and other banking services. As at 31 March, 2011, XacBank had 86 branches and support centres across Mongolia.

This document is not an offer of securities for sale anywhere, including in the United States. Notes referred to above may not be offered or sold in the United States absent registration or an exemption from registration. No public offering of the Notes will be made in the United States or elsewhere and the Bank does not intend to register any part of the offering of any Notes in the United States or elsewhere.

Link to article


Eurasia Capital: Fears in Global Recovery and Selloff in Equities. What Does It Mean to Mongolia?

August 11 (Eurasia Capital) --

Global selloff on US's Sovereign Debt. S&P's downgrade of United States' credit rating to "AA+" from risk free "AAA" has unleashed turmoil across the global financial markets which were volatile enough as it is. The markets have been concerned about the debt problems in some of the EU countries that have been putting pressure on the recovery of the global economy. To some extent the announcement made by the European Central Bank that it is ready to purchase Italian and Spanish bonds in an attempt to stop contagion of the sovereign debt crisis has been positively received by market participants. However, strong negative investors' sentiment on the back of US credit rating downgrade by S&P has resulted in significant decline of stock markets and commodity prices for the last three days (August 8-10). All major US equities plunged, including S&P 500 Index -6.6%, DJIA-6.3% and Nasdaq Composite Index-5.9%. Asian markets - Shanghai Shenzhen CSI 300 Index, Hang Seng Index and Nikkei Index have declined 2.5%, 5.5% and 2.8%. We view the current panic selling as the crisis of confidence. Although history was made, not much fundamentally changed. S&P revealed nothing new about the US or global economy, in our view. Sovereign debt issues besieging the western economies have been lingering for quite some time. We believe reducing that debt has no immediate solution, but remains critical for long term well being of global economy.

Mongolian economy will maintain its strong growth. Demand for commodities will continue to set pulse of Mongolian economy. Confidence crisis in the West is unlikely to have any immediate effect on Mongolia. We do not believe the current crisis will degenerate into global downturn akin to 2008, which brought fiscal shock to Mongolia. Commodity prices are to remain strong due to demand from emerging Asian economies. Copper and coal are the core export revenue generators for Mongolia. Although, international copper price has declined about 11% to US$8,570 since the beginning ofAugust, Mongolia is well positioned to withstand any short term volatility in commodity prices. State budget price assumptions for copper and coal in the current year are US$5,983/t and US$98.8/t respectively. In 7M2011, state budget registered a surplus of MNT125.4bn, whilst accumulating MNT40.7bn in the Stabilization fund. Net international reserves in excess of US$2.1bn are over two times of 2008 level.  

Mongolia-focused international equities: decline on sentiments rather than on values. Internationally listed Mongolian equities have followed the worldwide stock market plunge mainly stirred by the news on European Union debt crisis, and aggravated by the S&P announcement. The Silk Road Mongolia Index, which tracks Mongolian local and internationally listed companies, declined 4.14% last week (August 1-5) followed by further decline of -6.4% with a cumulative loss of about US$2bn in the last three days (August 8-10). Most of the big names including Ivanhoe Mines (-14.8%), SouthGobi Resources (-12.6%), Mongolia Energy Corp. (-13.1%) and Mongolia Mining Corp (-7.4%) have suffered substantial losses last week, continued by further slump this week (-12.1%, -3.1%, -8,1% and -0.4%, respectively). We believe that this decline was driven by the immediate negative speculation rather than the existing strong fundamental values the Mongolia-focused companies are uniquely endowed with. 

Local stocks: no impact on low free float and valuation. The Mongolian domestic market did not react to events in the US, Europe or in the Middle East, being relatively flat for the last week. However, during the first three days of this week, MSE Top20, the national benchmark declined only 1.28% (or a US$63.5mn loss in market cap). Although there is no clear indication that investors in the local Mongolian equities are concerned with global markets, we expect small correction if the global markets' rout continues. The MSE is characterized by limited number of international investors, low liquidity, and small free float. This is the main reason for low correlation of the MSE with global markets.  

In our view, the ongoing concern of global economic recession that dragged down the international commodity prices and resulted in selloff of equities globally raises a caution over the economic outlook of Mongolia and its equities in the short-term. Although Mongolia's resource export - driven economy may be affected in the short term, we hold a positive long-term outlook. We do not believe the current crisis will lead to the repeat of 2008. Mongolian economy is to continue its breathtaking transformation. We believe that Mongolia's equities market is in an oversold situation and selected stocks are still attractively priced.

Link to full report


NSO: Social and economic situation of Mongolia (As of the first 7 months of 2011)

August 10 (NSO) --

I. Social indicators

In the first 7 months of 2011, 39846 mothers delivered 40036 children (live births) increased by 783 mothers or 2.0 percent, and 809 children or 2.1 percent, compared to the same period of previous year.

In the first 7 months of this year, at national level infant mortality decreased by 94 or 11.9 percent to 697, and child mortality aged 1-5 decreased by 66 or 30.7 percent to 149 compared to the same period of previous year.

The number of unemployed who had registered at Labour and Welfare Service Divisions in aimags and capital city and were actively looking for job reached 40.6 thousand at the end of July, 2011, reflecting an increase of 1376 persons or 3.5 percent compared to the same period of the previous year. Compared to the same period of the previous year, the increase in the number of registered unemployed was mainly due to the increases in Ulaanbaatar city (2714 persons), Ovorkhangai (1170 persons), Khovd (1163 persons), Darkhan-Uul (276 persons), Bayan-Olgii (94 persons), Bulgan (76 persons), and Dundgovi (65 persons) aimags.

In the first 7 months of 2011, 540.5 thous.persons were registered as insurer, of which 341.7 thousand or 63.2 percent were those from the establishments, and 198.9 thousand or 36.8 percent from the government budgetary organization. Compared to the same period of previous year, the number of insurers increased by 39.1 thousand or 7.8 percent, and the number of insured establishment increased by 44.5 thousand or 15.0 percent, while the number of insured government budgetary organization decreased by 5.3 thousand or 2.6 percent...

In the first 7 months of 2011, social welfare pensions and benefits allocated to 56.2 thous.persons, showing an increase of 478 persons or 0.9 percent, total amount of the allocated fund increased by 4.7 bln.tog or 32.5 percent compared to the same period of the previous year. In the first 7 months of 2011, 413.7 bln.tog were distributed to 2.7 mln.persons (double counting) from the Human development fund.

In the first 7 months of 2011, the number of infectious disease cases was 23.2 thousand, down by 13 cases or 0.1 percent compared the same period of the previous year. Particularly, there were 1980 persons or 84.2 times decrease in by Enterovirus-71, 1970 persons or 67.0 times in mycoses, 515 persons or 30.6 percent in shigellosis, 548 persons or 18.8 percent in trichomoniasis, 541 persons or 15.3 percent in gonococcal infection, and 135 persons or 4.7 percent in tuberculosis.

At national level, 11377 crimes were registered in the first 7 months of 2011, reflecting an increase of 132 crimes or 1.2 percent compared to the same period of the previous year. The increase in the number of crimes was mainly due to the increases in crime against the rules of safety of traffic and use of motor vehicles (232), crime against social security (220), crime against environmental protection rules (42), crime against children, family and social morality (40), crime against administrative rules (27), and crime against judicial procedures (18), although there were decreases in crime against the right of ownership (317), crime against human life and health (or physical well-being) (99), crime against population health (27), and crime against economic entity (20) compared to the same period of previous year.

In the first 7 months 2011, occurred crimes caused 4552 injuries and 714 deaths. The number of injuries up by 621 persons or 15.8 percent and the number of deaths down by 29 persons or 3.9 percent compared to the same period of the previous year.

II. Macroeconomic indicators

In the first half 2011, GDP increased by 29.1 percent or 1073.5 bln.tog to 4762.5 bln.tog at current prices, compared to the previous year. The increase was mainly due to the increases in industry, service sector and taxes on products. In the first half 2011, GDP increased by 14.3 percent or 269.1 bln.tog to 2152.6 bln.tog at current prices, compared to the previous year.

The national consumer price index in July, 2011 increased by 0.8 percent compared to the previous month, by 5.6 percent from December 2010, and by 10.1 percent compared to the same period of the previous year. The increase in national index compared to the previous month was mainly due to the increases of 2.5 percent in transport and 0.9 percent in food and non-alcoholic beverages. According to the report of the Bank of Mongolia, money supply (broad money or M2) at the end of July 2011, reached to 5922.5 bln.tog, reflecting increases of 149.9 bln.tog or 2.6 percent compared to the previous month, and 2379.4 bln.tog or 67.2 percent compared to the same period previous year.

At the end of July 2011, currency issued in circulation reached 673.9 bln.tog, increased by 35.2 bln.tog or 5.5 percent compared to the previous month, and by 221.6 bln.tog or 49.0 percent compared to the same period of previous year. Loans outstanding at the end of July 2011, amounted to 4681.4 bln.tog, up by 128.6 bln.tog or 2.8 percent compared to the previous month, and by 1709.4 bln.tog or 57.5 percent compared to the same period of the previous year.

Principals in arrears at the end of July 2011, reached 71.3 bln.tog reflecting an increase of 1.4 bln.tog or 2.1 percent compared to the previous month, and a decrease of 39.2 bln.tog or 35.4 percent compared to the same period of the previous year.

At the end of July 2011, the non-performing loans over the bank system reached 381.9 bln.tog, showing decreases of 8.6 bln.tog or 2.2 percent compared to the previous month, and of 32.6 bln.tog or 7.9 percent compared to the same period of the previous year. In July 2011, there were 18 trading days and 3.3 mln.shares valued at 25.3 bln.tog were traded. In the first 7 months of 2011, total revenue and grants of the General Government Budget amounted to 2305.7 bln.tog and total expenditure and net lending amounted to 2180.3 bln.tog, representing surplus of 125.4 bln.tog in the General Government Budget overall balance. In the same period of previous year, the overall balance was in deficit of 129.4 bln.tog. In the first 7 months of the year, General Government Budget overall balance surplus was mainly due to the revenue growth pace exceeded the expenditure growth by 20.2 percentage points.

Current revenue of the General Government Budget amounted to 2256.3 bln.tog and current expenditure reached 1731.3 bln.tog. Thus, the budget current balance was in surplus of 524.9 bln.tog. Compared to the same period of the previous year, tax revenue increased by 697.3 bln.tog or 53.8 percent. The increase was mainly due to the increases of 309.7 bln.tog or 71.6 percent in taxes on goods and services, 221.1 bln.tog or 2.5 times in other taxes, 88.2 bln.tog or 90.8 percent in taxes on foreign trade, 63.5 bln.tog or 38.0 percent in social security contribution, 12.7 bln.tog or 2.9 percent in income tax, and 2.1 bln.tog or 31.9 percent in ownership tax. Compared to the same period of the previous year, non-tax revenue increased by 109.7 bln.tog or 71.6 percent. The increase was mainly due to the increases of 59.8 bln.tog or 91.3 percent in revenues from budget entities, 32.4 bln.tog or 6.6 times in revenues from dividends, , 6.7 bln.tog or 33.9 percent in revenues from interest and fines, 6.3 bln.tog or 35.9 percent in revenues from navigation fee, 2.8 bln.tog or 13.0 percent in other revenues, 1.6 bln.tog or 7.1 percent in revenues from oil petrolium.

In the first 7 months of 2011, total expenditure and net lending of the General Government Budget increased by 566.9 bln.tog or 35.1 percent to 2180.3 bln.tog compared to the same period the previous year. This was mainly due to increases of 305.9 bln.tog or 48.9 percent in subsidies and transfers, 181.8 bln.tog or 30.6 percent in expenditure of goods and services, 144.4 bln.tog or 67.4 percent incapital expenditure, although there was decreases of 58.0 bln.tog or 39.1 percent in lending minus repayments, and 7.2 bln.tog or 24.0 percent in interest payments.

Spending of 358.7 bln.tog on capital expenditure in the first 7 months of 2011 was higher by 144.4 bln.tog or 67.4 percent compared to the same period of the previous year. The increase in capital expenditure was due to the increases of 123.9 bln.tog or 59.4 percent in capital expenditure of domestic sources, and 20.5 bln.tog or 4.5 times in foreign financed capital expenditure.

In the first 7 months of 2011, Mongolia traded with 116 countries from all over the world and total external trade turnover reached 5784.0 mln.US dollars, of which exports made up 2341.6 mln.US dollars and imports made up 3442.4 mln.US dollars. External trade balance showed a deficit of 1100.7 mln.US dollars in the first 7 months of 2011, increased by 970.0 mln.US dollars or 8.4 times compared to the same period of the previous year. External trade balance showed a deficit of 368.0 mln.US dollars in July, 2011, increased by 285.0 mln.US dollars or 4.4 times from 83.0 mln.US dollars deficit in July 2010.

Total external trade turnover increased by 2576.3 mln.US dollars or 80.3 percent compared to the same period of the previous year, of which imports up by 1773.2 mln.US dollars or 2.1 times, and exports up by 803.1 mln.US dollars or 52.2 percent.

III. Economic sector indicators

In the first 7 months of 2011, the total industrial output increased by 69.3 bln.tog or 6.8 percent to 1083.9 bln.tog (at 2005 constant prices) compared to the same period of the previous year. The increase in the industrial output was mainly due to 0.1-78.2 percent increases in mining and quarrying products such as copper with concentrate, crude oil, coal and iron ore; and 0.3 percent to 8.6 times increases in industrial main products of manufacturing sector such as bread, steel casting, combed down, milk, sausages, juice, decoration and medal, knitted goods, alcohol, soft drinks, sawn wood, cement, carpet, beer, cigarettes, concrete mortar, and electrical conductor wire.

In the first 7 months of 2011, 10177.2 thous.t freight and 2177.8 thous.passengers (double counting) were carried by railway transport. Compared to the same period of the previous year, the number of carried freight rose by 1240.1 thous.t or 13.9 percent and the number of carried passengers rose by 183.2 thous.persons or 9.2 percent. Due to the increases in carried freight and passengers, revenue from railway transport increased by 53.9 bln.tog or 33.7 percent to 214.2 bln.tog in the first 7 months of 2011,
compared to the same period of the previous year.

In the first 7 months of 2011, 1278.5 t.freight and 305.7 thous.passengers (double counting) were carried by air transport. Compared to the same period of the previous year, the number of carried freight increased by 444.3 t or 53.3 percent, the number of carried passengers rose by 100.0 thous.persons or 48.6 percent. Due to the increases in carried freight and passengers, revenue from air transport increased by 23.9 bln.tog or 39.0 percent to 85.4 bln.tog in the first 7 months of 2011, compared to the same period of the previous year.

According to the report of the Institute of Meteorology and Hydrology, maximum precipitation was registered in Tsetserleg soum (141.3 mm) of Arkhangai aimag in July, 2011. This July, Darkhan soum of Darkhan- Uul aimag had the highest air temperature (+36°C), while Altai soum of Govi-Altai aimag had the lowest air temperature (-0.4°C). Wind speed reached 34 m/sec in Uliastai soum of Zavkhan aimag.

Daily average concentration of nitrogen dioxide exceeded 14 times around West crossroad of Ulaanbaatar city, and 13th micro district; daily average concentration of sulphur dioxide exceeded 5 times around 13th micro district; particulate matter less than 10 micrograms exceeded 15 times around 32nd Toirog, 11 times around West crossroad, and 3 times around Kharkhorin market; particulate matter less than 2.5 micrograms exceeded 13 times around 13th micro district, 8 times around West crossroad from the maximum allowable concentration of air quality standard in July, 2011. 

In the first 7 months of 2011, 2100 disasters and accidents occurred. As a result, 146 people died, 165.3 thous.livestock and animals had lost. In the first 7 months of this year, 1789 object fires, 17 accidents related to artisanal mining and rock falls, 40 cases of animal madness disease, 55 river and lake accidents occurred. Estimated damage caused by the disasters and accidents amounted to 2.9 bln.tog.

Link to article


Mongolia hopes to generate nuclear energy in 2017

August 11 ( A two-day meeting to explore ways of Mongolia-Japan cooperation in the atomic energy sector began in Ulaanbaatar yesterday.  It has been jointly organized by the Nuclear Energy Authority of Mongolia and the Atomic Energy Agency of Japan.

Japanese Ambassador T.Kidokoro opened the meeting, which is chaired by the Deputy Chief of the Mongolian Nuclear Energy Authority, Ts.Damdinsuren. He said Mongolia plans to begin work next year on construction of a nuclear station and expected energy generation to begin in 2017. However, the availability of enough skilled local manpower was a critical problem, he said.

The Director of the Japanese Atomic Energy Agency, M.Senzaku, also spoke.

Link to article


Mongolia, Japan to cooperate in nuclear energy

ULAN BATOR, Aug. 10 (Xinhua) -- Mongolia's nuclear energy authority and Japan's Atomic Energy Agency discussed nonproliferation and other issues during a two-day meeting that ended Wednesday.

More than 40 specialists from Mongolia, Japan and representatives of the International Atomic Energy Agency attended the meeting.

Ts. Damdinsuren, a senior Mongolian nuclear official, said Ulan Bator has not changed its atomic plans despite the severe nuclear accident that occurred in Japan's Fukushima Daichi plant after the March earthquake and tsunami.

He said Mongolia has rich coal reserves, but using nuclear energy is favorable because fossil fuel could harm human health and the environment.

Mongolia has plans to begin construction of a nuclear plant next year that is expected to be operational in 2017, he added.

A senior Japanese nuclear engineer said Japan would be glad to provide technology and safety control support for Mongolia's peaceful use of nuclear energy.

Mongolia has rich uranium resources with 60,000 verified tons.

Link to article


Importers reduce fuel price

August 11 ( Fuel prices have been ultimately reduced, with petroleum importers charging less at retail outlets, as recommended by the Mineral Resources and Petroleum Authority. The recommendations also contained a threat of license cancellation if unreasonably prices were not brought down. This has now been done.

Link to article





August 9 (M.A.D. News) The summer of 2011 has been a difficult summer for Mongolian politics, as its economy grows so does interest by jealous neighbours. The functioning of its economy (and its mines) depends on a reliable supply of fuel to allow trains and trucks to ship its resources to its buyers. This supply of fuel has been compromised by the Russian government playing geo-political games in order to exert its influence over Mongolia.

To alleviate the country’s reliance on Russia for fuel, the Mongolian government has decided to start construction of 3 refineries so that it may produce up to 70 to 80% of domestic demand. It is hoped that in due time, Mongolia will itself be able to export fuel to other nations.

The first refinery, called “Khet” will have its start-of-construction ceremony today and is expected to be completed in 2015, upon completion it will be able to produce 120 tons of fuel for a duration of 30 years. The construction of the refinery is expected to cost between 35 and 40 billion  MNT.

The construction of the other two refineries is also scheduled to start tomorrow, one will be located in Darkhan with a production capacity of 200 thousand tons in co-operation with Mongol Seku LLC and the second will be in the Dorno-Gobi prefecture with a production capacity of 300  thousand tons and will be established in co-operation with Mon L Gas LLC.

Link to article


Ministry official thinks Mongolia could export wheat this year

August 11 ( The Executive Director of the Agriculture Support Department in the Ministry of Food, Agriculture and Light Industry, L.Duinkherjav, has told the newspaper Uls Turiin Toim that this year’s wheat crop should be enough to meet the entire domestic demand and still have a surplus that can be exported. This is an indication of how agriculture has improved in the last three years because of Government policy and investment. 

Ministry officials have held preliminary talks on exporting, even if it is not a large amount, to China. With 120,000 tons of wheat in stock and a plentiful harvest expected, the Ministry expects no rise in the price of flour and flour products.

Link to article


ACA investigating D.Sugar

August 11 ( Media staff of the Anti Corruption Authority has revealed that the Chief of the State Property Committee, D.Sugar, is being investigated by the ACA but has not said what the charges are.

Unconfirmed sources say there have been several allegations of misuse of authority against Sugar.

The most damaging of these relates to his personal gain from arranging for supplies to the Erdenet factory by a foreign company.

Link to article


Urbanisation creating slums in Ulan Bator

Nomads in Mongolia struggle to adapt to city life in country's capital amid poor sanitation.

August 7 (Aljazeera) As the least densely populated country in the world, space has never been a problem for Mongolia.

But with more people abandoning their nomadic ways in favour of city life, the problems of urbanisation are starting to surface.

Al Jazeera's Melissa Chan reports from the capital Ulan Bator, where shanty towns now make up half of the entire city.

Link to video report


A showdown over traditional throat singing divides China and Mongolia

August 11 (Washington Post) ULAANBAATAR, Mongolia — For nearly two decades, Odsuren Baatar, a master of Mongolian throat singing, has been visiting China to teach his craft — making the human voice soar, quiver and drone, its pitches in eerie unison like a bagpipe.

When he first started going there, his students were all beginners, because nobody in China knew much about throat singing. But they were eager to learn, and, after years of sharing his techniques, Odsuren took pride in having helped promote an art form prized here in Mongolia as a singular national treasure.

His pride, however, turned to dismay and then anger when he saw a copy of a video that China had quietly submitted to the United Nations Educational, Scientific and Cultural Organization: It featured one of his former students pitching a bid by Beijing to have throat singing registered by the United Nations as part of the “intangible cultural heritage of humanity,” with China getting the credit.

I was in shock. I taught them and then they say it is theirs,” Odsuren said.

Throat singing — a fiendishly difficult practice that musicologists know as overtone singing — has often attracted interest, sometimes covetous, from outside Mongolia. The Russian region of Tuva, which borders Mongolia, tried briefly in the 1990s to brand it as Tuvan and impose a licensing system on throat singers.

Frank Zappa, the late American musician, jammed with a throat-rock ensemble called Huun-Huur-Tu, and folk music aficionados around the world have long marveled at how a good throat singer can produce two or more distinct pitches simultaneously in an otherworldly mix of melody and tone.

But China has proved the most zealous fan of all: Its pitch worked, and the country got UNESCO to list Mongolian throat singing under China’s name.

Sitting in a dingy Soviet-style apartment, the 63-year-old teacher showed photographs of himself in happier times with his pupils in China and fumed at the betrayal: “I don’t like people lying and claiming something that everyone knows is Mongolian.

A listing by UNESCO doesn’t bring any money or copyright privileges, but it does confer bragging rights — and it helps China reinforce cultural claims viewed as essential to holding together a vast territory populated on the fringes by ethnic minorities of often uncertain loyalties. That includes a population of ethnic Mongolians, most of them in the Chinese region of Inner Mongolia, which was hit by a wave of unrest in May and further protests in June fed by resentment against the area’s majority Han Chinese.

By claiming — and controlling — culture, the Communist Party has sought to keep such tensions in check, not only in normally placid Inner Mongolia, but also in far more protest-prone regions such as Tibet and Muslim Xinjiang.

Throat singing is part of China’s splendid general culture because Mongolians are one of China’s ethnic groups,” said Li Qiang, director of Inner Mongolia’s Song and Dance Academy, the institution where Odsuren taught. Arguments over who actually developed throat singing and where, Li added, aren’t important because what matters today is who can best protect the art: “Right now, we are strong and capable enough to do that.”

In 2009 and 2010, more than a quarter of all items inscribed by Paris-based UNESCO on its cultural heritage roster were from China.

Cecile Duvelle, head of ­UNESCO’s intangible cultural heritage section, said in response to written questions that a listing does not mean an item “belongs to the state” or that China’s cultural heritage “has more or less value,” but she added that the organization “is nevertheless discussing this unbalanced situation.”

Many of the items under China’s name are clearly Chinese, such as Peking Opera, acupuncture, dragon boat festivals and Chinese calligraphy. But also listed as Chinese are the epic of Manas, a poem that Kyrgyzstan considers the cornerstone of its national culture, as well as Tibetan Opera, and a Korean farmers dance.

A culture grab?

When the United Nations first adopted a Convention for the Safeguarding of Intangible Cultural Heritage in 2003, the idea was to promote diversity and help indigenous peoples protect their heritage.

Exactly which “practices, expressions, knowledge and skills” are put on UNESCO’s list gets decided by a U.N. committee made up of officials from 24 member states. And no country has been more active than China in nominating entries — to the chagrin of Mongolians, Kyrgyz, Tibetans and others whose culture is in part now registered as being from China.

Scholars with no dog in the fight also have been taken aback by a system they complain is driven by bureaucratic process and power politics as much as concerns for cultural authenticity.

I was very surprised to find the Chinese khoomei (throat singing) nomination,” said Mark van Tongeren, a Dutch musicologist who served as an expert on a UNESCO review panel. “For me, it seemed obvious this was a tricky one.”

Li, the Song and Dance Academy director, denied any attempt by China to annex Mongolia’s heritage, insisting that Inner Mongolia had its own throat singers long before Odsuren started teaching in China. “We prepared well, and we showed enough evidence (to UNESCO). No wonder we got it.”

Odsuren acknowledged that the area that is now Chinese Inner Mongolia did have throat singers in the distant past but said the art died out there long ago, a claim supported by China’s official Xinhua News Agency, which reported in 2006 that throat singing “was lost more than 100 years ago” in China. Odsuren thinks this should have made China ineligible for a UNESCO listing because the tradition was not “transmitted from generation to generation” as required by the 2003 convention.

Li, for his part, said that although it looks “on the surface” that throat singing had vanished in China, and “we thought so at first,” it had in fact survived among Chinese nomads.

Under Mao Zedong, who ruled China from 1949 until his death in 1976, the Communist Party took a dim view of “minority” cultures. It still frowns on cultural activities it doesn’t control, but is now eager to develop — and lay claim to — songs, dances and other art forms that it hopes will help cement the loyalties of Mongolians and other minorities.

Ancient tune

Throat singing is generally accepted to have originated in the west of what is now Mongolia. It is thought to have originated among herders mimicking the sounds of animals, water and the wind. The practice developed alongside animist beliefs that all natural objects have souls or spirits whose power humans can harness through mimicry.

Throat singing was spread by the explosive conquests of Genghis Khan and his descendants, one of whom, Kublai Khan, took control of China in 1271. Mongolia, which later fell under China’s sway, became an independent state in 1921, but, with a population of only 2.8 million today, it is deeply wary of its 1.3-billion-strong neighbor and longtime rival to the south.

When news of UNESCO’s decision to endorse China’s claim reached Ulaanbaatar, the Mongolian capital, Odsuren was pilloried in the local media for selling out Mongolian culture. China’s UNESCO video included not only his former pupil — who declined to comment — but also footage of Odsuren during one of his visits to Inner Mongolia.

“I suffered for a whole year. There was a lot of commotion here about how I sold throat singing to the Chinese,” Odsuren said.

The furor calmed after Mongolia submitted its own entry for throat singing and, in November, secured a spot on UNESCO’s list. The register now has two throat singing entries, one for China, one for Mongolia.

“We already have our place on the list,” said Li, the academy director in China, who is an ethnic Mongolian. “It’s not the time to argue over which one is authentic.”

Odsuren said he’s over his anger and doesn’t bear any grudge toward Chinese Mongolians who now claim for China an art that he taught them.

It’s not easy, he said, being an ethnic minority in China, particularly in Inner Mongolia, where Mongolians are far outnumbered by Han Chinese and under pressure to prove their allegiance. “They have to do this kind of thing to get ahead. They’ve got to serve the strong.”

Link to article


<Mogi & Friends Fund A/C>


Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.




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